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Plum Creek Timber Company, Inc. Reports Results For Second Quarter 2012

Stocks in this article: PCL

We present Adjusted EBITDA as a supplemental performance measure because we believe it facilitates operating performance comparisons from period to period, and each business segment’s contribution to that performance, by eliminating non-cash charges to earnings, which can vary significantly by business segment. These non-cash charges include timber depletion, depreciation of fixed assets and the basis in lands sold. We also use Adjusted EBITDA as a supplemental liquidity measure because we believe it is useful in measuring our ability to generate cash. In addition, we believe Adjusted EBITDA is commonly used by investors, lenders and rating agencies to assess our financial performance.

A reconciliation of Adjusted EBITDA to net income and net cash from operating activities, the most directly comparable U.S. GAAP performance and liquidity measures, is provided in the following schedules:

 
  Six Months Ended June 30, 2012 (In Millions)
     
Depreciation, Depletion Basis of Real Adjusted
Operating Income and Amortization Estate Sold EBITDA
By Segment
Northern Resources $ 10 $ 13 $ $ 23
Southern Resources 43 33 76
Real Estate 59 1 75 135
Manufacturing 13 7 20
Other 9 9
Other Costs and Eliminations (30 ) (30 )
Other Unallocated Operating Income (Expense), net 1       1  
Total $ 105   $ 54   $ 75   $ 234  
 
Reconciliation to Net Income (1)
Interest Expense (69 )
(Provision) / Benefit for Income Taxes 1
Equity Earnings from Timberland Venture 28  
Net Income $ 65  
 
Reconciliation to Net Cash Provided By Operating Activities
Net Cash Flows from Operations $ 89
Interest Expense 69
Amortization of Debt Costs (2 )
Provision / (Benefit) for Income Taxes (1 )
Working Capital Changes 2
Distribution from Timberland Venture (28 )
Deferred Income Taxes 1
Deferred Revenue from Long-Term Gas Leases 5
Timber Deed Acquired 98
Pension Plan Contributions 7
Other (6 )
Adjusted EBITDA $ 234  
 
 
Six Months Ended June 30, 2011 (In Millions)
     
Depreciation, Depletion Basis of Real Adjusted
Operating Income and Amortization Estate Sold EBITDA
By Segment
Northern Resources $ 10 $ 11 $ $ 21
Southern Resources 34 24 58
Real Estate 88 1 43 132
Manufacturing 9 6 15
Other 11 11
Other Costs and Eliminations (30 ) 1 (29 )
Other Unallocated Operating Income (Expense), net 1       1  
Total $ 123   $ 43   $ 43   $ 209  
 
Reconciliation to Net Income (1)
Interest Expense (70 )
(Provision) / Benefit for Income Taxes (1 )
Equity Earnings from Timberland Venture 30  
Net Income $ 82  
 
Reconciliation to Net Cash Provided By Operating Activities
Net Cash Flows from Operations $ 157
Interest Expense 70
Amortization of Debt Costs (1 )
Provision / (Benefit) for Income Taxes 1
Working Capital Changes 31
Distribution from Timberland Venture (28 )
Deferred Income Taxes (4 )
Deferred Revenue from Long-Term Gas Leases (12 )
Other (5 )
Adjusted EBITDA $ 209  
 

(1) Includes reconciling items not allocated to segments for financial reporting purposes.

 
 
Quarters Ended June 30, 2012 (In Millions)
     
Depreciation, Depletion Basis of Real Adjusted
Operating Income and Amortization Estate Sold EBITDA
By Segment
Northern Resources $ 4 $ 6 $ $ 10
Southern Resources 22 18 40
Real Estate 29 1 12 42
Manufacturing 9 3 12
Other 4 4
Other Costs and Eliminations (14 ) (14 )
Other Unallocated Operating Income (Expense), net 1       1  
Total $ 55   $ 28   $ 12   $ 95  
 
Reconciliation to Net Income (1)
Interest Expense (34 )
(Provision) / Benefit for Income Taxes
Equity Earnings from Timberland Venture 15  
Net Income $ 36  
 
Reconciliation to Net Cash Provided By Operating Activities
Net Cash Flows from Operations $ 83
Interest Expense 34
Amortization of Debt Costs (1 )
Provision / (Benefit) for Income Taxes
Working Capital Changes (28 )
Deferred Revenue from Long-Term Gas Leases 3
Pension Plan Contributions 7
Other (3 )
Adjusted EBITDA $ 95  
 
 
 
Quarters Ended June 30, 2011 (In Millions)
 
Depreciation, Depletion Basis of Real Adjusted
Operating Income and Amortization Estate Sold EBITDA
By Segment
Northern Resources $ 3 $ 5 $ $ 8
Southern Resources 15 12 27
Real Estate 50 1 24 75
Manufacturing 5 3 8
Other 4 4
Other Costs and Eliminations (14 ) 1 (13 )
Other Unallocated Operating Income (Expense), net        
Total $ 63   $ 22   $ 24   $ 109  
 
Reconciliation to Net Income (1)
Interest Expense (35 )
(Provision) / Benefit for Income Taxes
Equity Earnings from Timberland Venture 16  
Net Income $ 44  
 
Reconciliation to Net Cash Provided By Operating Activities
Net Cash Flows from Operations $ 81
Interest Expense 35
Provision / (Benefit) for Income Taxes
Working Capital Changes 1
Deferred Income Taxes (1 )
Deferred Revenue from Long-Term Gas Leases (5 )
Other (2 )
Adjusted EBITDA $ 109  
 

(1) Includes reconciling items not allocated to segments for financial reporting purposes.

 




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